(New York) The American group Levi Strauss, an iconic denim specialist, plans to cut 10% to 15% of its global administrative workforce in the first half of the year, as part of a program to improve its long-term productivity.
This business plan, called “Project Fuel”, must be implemented over the next two years and notably provides in its first phase for a reduction in the workforce, the group explained on Thursday in a press release on its fourth quarter results. 2023.
A charge of 110 to 120 million euros should be recorded in the first quarter accounts due to this restructuring, he said, specifying that others could be added as the plan is implemented. ‘business.
This should enable a net cost saving of $100 million over the current financial year.
Levi Strauss currently employs approximately 20,000 people worldwide, including approximately 5,000 in administrative services.
In the fourth quarter of its staggered financial year ending November 27, it recorded a turnover of 1.64 billion dollars (+3% year-on-year) and generated a net profit of 127 million (-16%).
Reported per share and excluding exceptional items – a benchmark for the markets – the latter comes out to 44 cents when the consensus expected 43.
Sales remained stable over the whole year at $6.17 billion while net profit fell to $250 million, compared to $569 million for its delayed 2022 financial year.
“The year 2023 was difficult but we ended it on a strong note and I am optimistic about the future,” commented Chip Bergh, boss of the group, quoted in the press release.
He is due to hand over control of the group on January 29 to Michelle Glass, and retire on April 26.
For 2024, Levi Strauss forecasts an increase of 1% to 3% in its turnover and net profit per share on a comparable basis of between 1.15 and 1.25 dollars. The latter stands at 61 cents for 2023.
In electronic trading after the New York Stock Exchange closed on Thursday, Levi Strauss shares fell 1.59%.